Tradeweb Records 53% Trading Volume Increase In August

Tradeweb Markets has reported a positive trading volume of $50.09 trillion for August 2024. The marketplace noted that the volume, which is a 53% increase, was driven by its Bond and Mortgage trading.

The platform noted that trading activities on US government bonds reached an average daily volume (ADV) of $228 billion in August. This shows a 59.9% surge from the numbers last year. The platform also saw its ADV hit $2.21 trillion, indicating a 53.9% surge year-over-year.

Tradeweb Sees Increase In Trading Activities For European Bonds

The surge was also helped by the increased trading activities in European bonds, surging 11.8% in its ADV. The increased trading activities were driven by a combination of more institutional adoption and improved market conditions. The expansion was also a result of the Global repurchase agreements by Tradeweb, as it recorded an impressive 30.8% increase from the same month last year.

As the market is expecting future rate cuts, the retail money market has remained strong. Mortgage trading witnessed a strong increase in August, as ADV climbed to $230,7 billion, indicating a 32% surge from the same month last year.

Role activity and pool trading also played a major role in the increase in trading volume as investors participated in more flexible mortgage-backed securities trading.

Tradeweb also saw growth in trading markets, especially in credit derivatives. It recorded an ADV of $18.6 billion, indicating a 135.6% surge from the figures in the same period last year. The surge was driven by systematic trading strategies and hedge funds, according to the report. Additionally, municipal trading increased to $392 in ADV, showing a 13.4% surge year-over-year. It benefited from record issuance throughout August.

US ETFs Saw An Increase Of 6.8% YoY

As credit markets and rates led the surge, the platform also recorded immense growth in equities trading. According to the report, US exchange-traded funds (ETFs) recorded an ADV of $7.2 billion, indicating a 6.8% increase year-over-year.

Additionally, the European ETFs witnessed a massive surge of 43.4% as the market reached $2.7 billion. Investors are looking to reposition their assets and stay ahead amid market uncertainties, which has led to increased use of ETFs in institutional portfolios.

Tradeweb is also seeing massive strength from rates derivatives, with swaptions and swaps reaching ADV $402.3 million. This indicates a 5.4% surge from the same month last year.

The wider rates derivatives segment also hit an impressive record of $727.4 billion, indicating an increase of 35.7% year over year.  However, Tradeweb had a poor performance in compression activity despite the massive increase in trading volumes. As clients moved to other protocols following changes in market conditions, it declined 22% year-over-year.